Singapore legislation
Clause 13
Clause 13
Repeal and re-enactment of section 58
Section 58 of the principal Act is repealed and the following section substituted therefor:“Certain moneys or property received by dealers to be paid into trust account58.—
A dealer shall establish and maintain with a custodian or custodians in Singapore one or more trust accounts in Singapore for his clients.(2) A dealer shall pay or deposit any moneys or property held by him on trust for a client into a trust account not later than the next bank business day following the day on which the dealer has received the moneys or property.(3) A dealer who contravenes or fails to comply with subsection (2) shall be guilty of an offence and shall be liable on conviction to a fine not exceeding $10,000 or to imprisonment for a term not exceeding 12 months or to both.(4) Without limiting the generality of subsection (2), a dealer shall pay into a trust account within the time specified in that subsection —
the moneys (less any brokerage or other proper charges) that are received from or on account of the client for the purchase of securities and that are not attributable to securities delivered to the dealer;
the moneys (less any brokerage or other proper charges) that are received for or on account of the client from the sale of securities and that are not paid to the client or paid as the client directs; and
any other moneys received from or on account of the client that are not paid to the person entitled to the payment or paid as the client directs.(5) Without prejudice to subsection (1), a dealer may establish and maintain a trust account for any of his clients with a foreign custodian that is appointed by —
the dealer with the prior consent of the client concerned; or
the client concerned.(6) A dealer who maintains a trust account for a client with a foreign custodian may pay or deposit into that trust account moneys or property in a currency, or denominated in a currency, other than the Singapore dollar, and no other moneys or property shall be paid or deposited into that trust account. (7) For the purposes of this section, “client”, in relation to a dealer, means any person on whose behalf a dealer holds moneys or property, but does not include the dealer himself.”.